Big Lots, (BIG) has ventured into the e-commerce arena to allow bargain hunters anywhere to shop and save. Current estimates are projecting 40% growth this year and the long-term growth is a bargain, with a PEG of 0.7.

Company Description

Big Lots operates, through its subsidiaries, as a discount and closeout retailer in the United States. The company offers great bargains on a variety of constantly changing products, making it a one of a kind shopping experience. Big Lots is based in Columbus, Ohio, with over 14,000 employees, and a market cap of $2.5 billion.

Now Available Online

Big Lots announced the launch of its e-commerce division on Oct 21. Customers can now go bargain hunting from the comfort for their own home.

The primary draw of the web site, other than convenience, will be the “Deal of the Day”. Big Lots will also be able to sell products that in lower quantities that it would not be able to sell in store.

With merchandise changing constantly and the “Deal of the Day”, shoppers may want to frequent the site for the latest deals.

Growth at a Bargain

Despite the volatility in the market, particularly retailers, the forecast for the discount outlet remains strong. Current year earnings estimates are $1.98 per share, or a 40% year-over-year increase.

Estimates have been steady across the board for the past month. The current long-term growth rate of 15% yields a PEG ratio of 0.7.

Favorable Industry Comparisons

Big Lots is the top rated company amongst Discount Retailers on Zacks.com. The industry as a whole is ranked as the 15th out of 217.

The Zacks #1 ranked stock has solid comparisons to its competitors. A 15% 5-year growth rate tops the industry average of 12%. The company also has a superior ROE of 23%, easily beating the average of 19%.

The Chart

Shares of BIG have been hit hard, but could find some support between $19 and $20. Take a look at the chart below.

Big Lots Chart

Content Courtesy: Zacks Investment Research

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